Stock Analysis & Ideas

Boost Your Passive Income; 3 Stocks with 50+ Years of Dividend Growth

Story Highlights

Dividends are an attractive source of passive income. These companies are Dividend Kings, making them a reliable investment for income investors.

Dividend-paying stocks are one of the top sources of passive income. While stocks are a relatively risky investment, there are companies that have paid dividends for more than 50 years and are known as ‘Dividend Kings.’ This implies that investors can rely on these companies to boost their passive income. Against this background, investors could consider the shares of Coca-Cola (NYSE:KO), Procter & Gamble (NYSE:PG), and Emerson Electric Company (NYSE:EMR). Let’s delve into the details.

Is It Smart to Invest in Coca-Cola?

Beverage giant Coca-Cola is a smart investment for investors seeking to invest in a dividend-paying stock. Coca-Cola hiked its dividends for 60 consecutive years. It pays a quarterly dividend of $0.44 a share, translating into a yield of 2.87%.  

KO’s defensive business model, ability to grow organic sales and consistent EPS growth support its payouts. Further, Coca-Cola’s low beta of 0.51 implies that its stock remains relatively immune to extreme market swings.  

Coca-Cola stock has received seven Buy and one Sell recommendations for a Strong Buy consensus rating. Further, KO’s price target of $67.13 implies 8.84% upside potential. Also, KO stock has a maximum Smart Score of “Perfect 10.” (Stay abreast of the best that TipRanks’ Smart Score has to offer.) 

How Often Does Procter and Gamble Pay Dividends?

Procter & Gamble pays a quarterly dividend of $0.91 a share, reflecting a yield of 2.39%. This consumer products manufacturer has been paying dividends for 132 consecutive years. Meanwhile, it increased its dividend for 66 years. 

Procter & Gamble’s solid payout history highlights that it is one of the most reliable income stocks. Like Coca-Cola, PG’s dividend payments are supported by its defensive business, ability to generate solid organic sales, and growing earnings base.

Procter & Gamble stock has a Moderate Buy consensus rating on TipRanks based on six Buy and five Hold recommendations. Analysts’ average price target of $155.27 implies 3.21% upside potential. Moreover, PG stock has an Outperform Smart Score of eight. 

Is Emerson a Good Stock?

Technology and engineering company Emerson Electric is an excellent stock to generate reliable passive income. EMR has raised its dividends for 66 consecutive years. It pays a quarterly dividend of $0.52 per share, translating into a yield of 2.11%. 

Its solid payouts are driven by a growing earnings base. Further, its focus on optimizing its portfolio through acquisitions and divestitures bodes well for growth. Also, its multi-billion dollar order backlog implies strong growth ahead. 

EMR stock has received six Buy and Hold recommendations for a Moderate Buy consensus rating. Meanwhile, EMR’s price target of $103.45 implies 13.38% upside potential. EMR stock sports a maximum Smart Score of “Perfect 10.” 

Bottom Line  

The solid dividend growth history, growing earnings base, well-covered payouts, and Outperform Smart Score on TipRanks suggest that investors can rely on KO, PG, and EMR stocks to enhance their passive income.


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